Start A Private Labeling Business - Business Ideas

Updated: September 15th, 2022
Start A Private Labeling Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a private labeling business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell private labeling, or selling private labeling online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$15.4T
revenue (monthly)
$20K
starting costs
$11.7K
gross margin
90%
time to build
210 days
growth
SEO
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$150

$250

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Software Expenses

$162

$2,894

Advertising & Marketing Costs

$0

$1,400

Total Startup Costs

$1,135

$23,259

Successful Businesses

Business URL Rank

Private Label Rights

theplrstore.com

47,033

Private Label Masters

privatelabelmasters.com

153,341

Lady Burd

ladyburd.com

229,590

Modern Basic Cosmetics

modernbasic.com

391,433

Goodvara, LLC

goodvara.com

558,131

Silver Shadow Ventures

silvershadowventures.llc

589,341

Private Label Insider

privatelabelinsider.com

677,459

Italianprivatelabel.com

italianprivatelabel.com

835,753

UAS Labs

uaslabs.com

932,610

Casco Bay Hemp

cascobayhemp.com

976,322

Private Label CBD

cbd-mfg.com

1,045,355

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Little startup costs required

The cost to start a private labeling business costs significantly less money than most businesses, ranging anywhere from 62 to 23,259.

Rewarding work

Starting a private labeling business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

No overhead costs

To get your private labeling business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!

Cons Description

Crowded Space

Competition is high when it comes to your private labeling business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Longer Sales Process

A private labeling business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a private labeling business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a private labeling business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Isolation

Often times, as a private labeling business, you typically work alone and do not have much face-to-face interaction with other team members.

Taxes

As a private labeling business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.